The National Debt

Those in government must be able to preempt a collapse of the US dollar to prevent domestic and international catastrophe, chaos and ruin. The time to act is now, not when a currency collapse is in full motion. So, plans and means must be implemented while there is yet time to avoid collapse, chaos and ruin.

FED employees go to work, to run operations but are forced to resign from the  FED, becoming Bank of US federal employees, during a banking holiday.

USD-FRN is designated as the FRN, and the replacing new greenbacks are designated the USD. The FED and FRNs in circulation are translated to the Bank of the United States and the US dollar (USD), the Lincoln Greenback.

Bank of US (BUS) swaps the money supply $21T FRNs to USDs, immediately paying off $21T of National Debt. FRNs are initially at par in swap for USDs. The FRN is then devalued in increments down to of the USDs, the remaining $14T in National debt is now paid off with  1.4T USDs. The National Debt is paid off.

Then, there is no National Debt, and no deficits by operation of law, and the economy roars immediately to at least $35T GDP. But that is just the start. As China continues to collapse, US industrial footprint massively grows. State Revenue share of federal business revenue taxes go parabolic, and California is saved from financial ruin.

Initially, the mint can use retired plates to quickly put a coupon of the Bank of the United States into circulation to very quickly get a US USD fiat currency in circulation. The references to FRN and FED being removed from the printed coupon. As the Mint produces new USDs and treasury puts them into circulation, the coupon can be initially redeemed at par, but later devalued to collect all coupons rapidly as the USD is placed into circulation. Initially, Debit cards, credit cards, coupons and FRNs can be used to purchase goods, pay bills, pay wages and other obligations.

FRNs in the money supply are exchaned for greenbacks USD initially at par but will later be at a rate severely devaluating the FRN relative to the USD to quickly collect FRNs and pay off the national debt.

Alienate FRNs abroad and thereby destroying the value of fiat FRNs globally. The US government shall only accept USD Greenbacks for any business tax payment. The great thing about Lincoln’s greenbacks is that no interest is payed and no borrowing is done. Printing greenbacks USD may cause temporary inflation spikes that can be controlled by adjusting currency rates and money supplies by the BUS. This currency driven inflation will pale in comparison to the inflation drivers as the US industrial footprint rapidly increases multiple times in response to the collapse of the Chinese manufacturing base as China continues to implodes. Fantastic boom times in the US are imminent and now is time to adjust the currency, the medium of exchange.

Print $1 $5 $10 $20 $50 $100 $500 $1000 Silver certificates in equivalence to silver ounces. Print $1 $2.5 $5 $10 $20 $50 $100 $500 $1000 Gold certificates in equivalence to 1/10 ounces of gold, respectively at 0.1 0.25 0.5 1.0 2.0 5.0 10.0 50.0 100.0 oz. Set the gold:silver ratio by law to 10:1 adjustable by the BUS. The ratio of FRNs to greenbacks shall be set by the Bank of the United States. The ratio of greenbacks and fiat coinage currently in use, to bullion coinage and bullion certificates shall be set by the Bank of the United States (BUS).

BUS fund rate loans USDs to commercial banks which in turn loan USDs out to society for profit.

BUS sets levels of USD reserves required by banks for maintaining commercial liquidity. The many states can borrow funds from the BUS and retire all state debts. BUS fund rate, bullion certificates sales and money supply are used to maintain inflation and deflation at 0%.

Continuous bullion acquisitions provide bullion certificates sales in USD to purchase USD for stepped deflation and inflation control, that may occur every 10 years at census time. Thus inflation and deflation may be a saw tooth function, averaged over decades to 0%.

Bullion supplies in the US will be protected from foreign influence by outlawing the export, melting, defacing and destruction of gold and silver US minted coinage. Border crossings and airports will have greenback exchanges for converting bullion coinage into greenbacks before exiting the USA. Custom officials will confiscate US minted bullion coinage and tender USDs or tender a receipt redeemable in greenbacks within the United States and US territories. Foreign aliens are prohibited from acquiring US minted bullion coinage.

All debt obligations of the USA States, private persons and businesses may be paid in FRN or USD. All USA domestic obligations, except the FED, shall be paid in greenbacks. All obligations due the USA shall be paid in FRN or greenbacks. All branches of the federal reserve system will be seized. All employees of the federal reserve system shall be denied entry, until resigning from the federal reserve system, swearing an oath of allegiance to the USA, and immediately hired back as federal employees of the Bank of the United States.

The system can start operations immediately using bank accounts designated as greenback accounts, for conversion to FRNs, fiat coinage and bullion coinage being available from the U.S. mint, and at the bank teller windows. As most Americans use credit cards, use of the USD becomes immediate. Businesses will immediately convert to USD paying wages in USD. A next phase is the printing of gold and silver certificates, by the US Mint.

During the procurement of the bullion space, shorts get wiped out and longs explode in FRN value as payback for the fed manipulating bullion for a century. At time zero, the greenback and FRN are at par. There is a bank holiday just after seizures of FED facilities and machinery where US electronic Greenbacks USD are deposited from the treasury and FRNs withdrawn to the treasury for national debt payoff. The money supply of $21T FRNs is replaced with the greenback USD and the national debt shrinks by $21T FRNs instantaneously. The FRN designation as the current USD shall be changed to the FRN, and the greenback designated as the USD. Withdrawn FRNs are used to start paying off US government debt in FRNs including the national debt. Functionally, private, commercial and state government entities can still use FRNs to buy and sell in the public market place during a transition phase. Existing debt obligations in FRN remain FRN debt obligations but rapidly devalued. Americans gain a win fall, the banks take a big loss. The Bank of the United State will insure short term liquidity using the USD.  The FED outstanding loans to any entity remain denominated in FRNs, with repayment in FRNs, to retire the FRN, and pay off the National Debt.

The Mint prints Greenbacks as soon a practicable. Printed USDs are sent to banks with defined reserve requirements to enable introduction as a USD currency in the public space as quickly as possible. The money supply grows in greenbacks USD and shrinks in FRNs as collected FRNs pays off FED debt, and all obligations denominated in FRNs decreases the National debt and FRN money supply.

After the bank holiday, next phase is the devaluation of FRNs relative to the greenbacks. These devaluation steps may be large in percentage, for example in 10% increments. Individuals, businesses and state governments and even the FED surviving accounts rapidly convert their FRNs to USD to save value, providing more FRNs to the US government to pay off the National debt as FRN interest payments to the FED rapidly decreases to xero.

The FRN to USD convertibility shall reach 10:1, in that 10 FRNs are converted to 1 USD within a couple of months. There is no longer a government deficit by operation of law as the US government can print greenbacks USD at will, as converted and collected FRNs to pay off the government National debt in devalued FRNs.

Banking experts will obviously be needed to review this general plan and work out the details. But this is how to eliminate federal deficits, the National Debt, and render the FED an empty shell, the facilities and machinery of which are seized by the US government and renamed the Bank of the United States, as FED employees are given the option to quit the FED and immediately become federal Bank of the United States employees, retaing their positins. As the bullion certificates come on line, the greenback USDs are, by a conversion rate adjustments, backed directly by bullion, rendering the greenback USD an exceedingly strong fiat currency, the premier currency of the world.

The purpose of this plan is to destroy the value of the fiat FRN and remove it from circulation and to dissolve the federal reserve system owned by private banks, and respectively replaced by, an interest free fiat greenback US dollar backed by a real money bullion currency regime and create the Bank of the United States entirely owned by the American people.

Now go watch “trading places” one more time.